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Chamber of Commerce to SEC: Abandoning Electronic Delivery Major Step Backwards

The Chamber of Commerce Center for Capital Markets Competitiveness recently sent a letter to SEC Chair Mary Jo White expressing disappointment in recent reports that the SEC was planning to abandon default electronic delivery for fund documents.  The letter states encourages the SEC to “move away from 1930’s paper based model and embrace the information delivery systems used by the general public, including investors and the businesses they invest in.”  The letter goes so far as to say that abandoning the effort “runs counter to the Commission’s tripartite mission of protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation and ignores the significant demand for electronic access to such documents.”  According to the Chamber, the use the internet to deliver documents “increase shareholder access to key information about their investments and promote constructive shareholder engagement with management.”  The Chamber does acknowledge that not all fund investors have “easy” access to the internet, and therefore supports the proposal’s preservation of the ability of fund investors to receive paper reports upon request.